As the euphoria of trade liberalisation is being replaced by hard and realistic analysis, a worrying feature is that the gains from comprehensive liberalisation are being reduced. This is especially so for the southern African region, as factors such as the loss of preferences into richer markets and the non-compensated losses from tariff revenues in the smaller Southern African Customs Union (SACU) states are being examined in detail. This is not to say that SACU must shun trade liberalisation; it is to say that it must carefully examine all the issues involved before committing to further trade agreements.

In a paper presented to the GTAP International Conference in Ethiopia during 15-17 June 2006, tralac and Lesotho researchers examine the impacts of known and possible trade agreements that involve SACU and calculate the potential loss of tariff revenues to SACU as preferences are granted to trading partners. The paper concludes that this loss will have major impacts upon Lesotho’s economy in particular as these tariff revenues currently comprise half of total government revenues in the Kingdom.

The following organized sessions were held at the conference:

Globalization and Poverty – Channels and Policy Responses
Organized by: Maurizio Bussolo

Global Trade Reform: Lessons from Comparing Global General Equilibrium Models
Organized by: Dominique van der Mensbrugghe

Economywide Analysis of MDG Strategies
Organized by: Hans Lofgren

Can the Economic Partnership Agreements between the EU and African Countries deliver on Development?
Organized by: Stephen Karingi

Modeling global land heterogeneity and land-use
Organized by: Steven Rose

Linking Models with Different, but Complementary, Perspectives
Organized by: Ashley Winston

Globalization, economic reforms and gender impacts
Organized by: Bernard Decaluwe

Deep Integration and Trade-Productivity Links: Recent Research and Lessons for Modelers
Organized by: Sherman Robinson

» Click here to find out more about the Conference.